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| Yuma AZ |
The Homeowners Protection Act
of 1998 (HPA)1 covers single-family primary residences closed after July 1999.
HPA provides for borrower-requested cancellation and lender required cancellation.
A borrower provides the lender a written request for mortgage
insurance cancellation. Upon receiving the request, the lender must cancel the
mortgage insurance policy either: On the date the mortgage loan balance is
first scheduled to reach 80% of original value, based on the initial
amortization schedule, regardless of the outstanding balance of the loan OR On the
date the mortgage loan balance actually reaches 80% of the original value For a
purchase transaction, original property value is the lesser of the property
sales price and appraised value. For a refinance transaction, original value is
the appraised value. only if: No subordinate liens AND The borrower has a good
payment history AND The borrower satisfies the lender's requirement that the
property value has not declined
Lender-required cancellation
under HPA
Lenders automatically cancel the mortgage insurance policy either:
On the date the mortgage loan balance is first scheduled to reach 78% of
original value, based solely on the initial amortization schedule,
regardless of the outstanding balance of the loan AND If the borrower is
current on the payments required by the terms of the mortgage
Excepting "high risk." loans
current value Individual
investors establish the criteria for cancelling mortgage insurance based on a
property's current value. the loan be
seasoned at least 2 years AND the
borrowers have an acceptable payment history AND the loan to value based on a current appraisal be 75% or
lower if less than 5 years have elapsed since the loan originally closed OR the loan to value based on a current appraisal be 80% or lower if more than 5 years have
elapsed since the loan originally closed
Borrowers must request mortgage insurance cancellation in
writing and provide a current value estimate acceptable to their lender. If you
need help with cancellation, please contact me CG NMLS 324982 I have some tools for appraisal which might or may not be acceptable to your service company. Remember the lender and servicer are required by law to inform you of your progress annually
Allow me to recap
You must ask in writing
You can't have 30 and 60 days mortgage late payments in past 24 months
No second trust deed, including solar
You pay for an appraisal, or BPO or whatever form the Servicor asks you to provide.
Hopefully Your loan was not sold to one of the worst rated service companies:
Ocwen Loan Servicing, Carrington Mortgage Services, Cenlar, LoanCare or Mr. Cooper, SPS